Royal Dutch Shell has said it will not drill for petroleum in the Arctic Ocean in 2013.
President Marvin Odum said the company will "pause" its exploration drilling in the Chukchi and Beaufort seas.
Mr Odum said the company made progress in Alaska but Arctic offshore drilling is a long-term programme that the company is pursuing in a safe and measured way.
Last year Shell drilled top holes on two wells in the Beaufort and Chukchi but drilling was hampered by problems.
The company could not complete work on a spill response barge required for drilling into petroleum-bearing rock.
The drill vessel used in the Beaufort was damaged when it broke loose from its tow vessel and ran aground on New Year's Eve.